Part 4/8:
With Donald Trump set to be inaugurated in late January 2025, investors must take heed of possible economic reforms. Although Trump's economic policies remain somewhat nebulous, they hint at battling inflation and implementing tax cuts while enforcing fewer regulations. However, complications arise when considering how to lower interest rates while simultaneously addressing inflation.
One notable policy proposal includes enforcing tariffs, which, while aimed at protecting American jobs and generating government revenue, could lead to broader economic challenges, including inflationary pressures. Tariffs, essentially taxes paid by US companies on imported goods, may result in increased consumer prices as companies incorporate these costs into their retail pricing.